Posted on: February 28, 2022, 01:06h.
Last update on: February 28, 2022, 01:17h.
Borgata Hotel & Casino in Atlantic City recently named a new boss. And the newly appointed chairman has big plans in store for the MGM Resorts property.
Last month, MGM promoted Travis Lunn to president of Borgata. Previously, he oversaw the company’s Mississippi casino operations at Beau Rivage in Biloxi and Gold Strike in Tunica.
Borgata’s position is far more prestigious, as it is MGM’s largest US casino asset outside of Las Vegas. The Atlantic City casino in 2019 before the pandemic generated net income of $817 million. Beau Rivage and Gold Strike collectively reported net revenues of $620 million in the same year.
Lunn arrives in New Jersey with big plans for Borgata. During an interview with the Associated pressLunn revealed that he had already received $10 million in renovation funds from MGM to renovate the Marina District casino and resort.
Follow the competition
Lunn says a big chunk of the $10 million budget will go towards updating the casino’s slot machines.
“Our guests come for a certain gaming experience, and we currently don’t offer some of the products offered by our competitors,” Lun explained.
Borgata’s main competitors are Hard Rock and Ocean Casino. Both Boardwalk casinos actively target premium Atlantic City players. Ocean and Hard Rock put a damper on Borgata’s longtime dominance of the Atlantic City casino industry.
In 2019, Borgata reported gaming gross revenue (GGR) of $709.5 million, or approximately 26% of Atlantic City’s entire land-based gaming market. That same year, Hard Rock and Ocean Casino won $324 million and $215.6 million, respectively.
In 2021, Borgata’s slots and table games generated $606 million in gaming revenue, down nearly 15% from 2019. Borgata’s overall brick-and-mortar market share fell below 24%.
Hard Rock and Ocean saw their GGRs increase significantly in 2021 compared to 2019. Hard Rock took home $431.1 million and Ocean $306.8 million. Lunn claims to be pleased with the successes of Hard Rock and Ocean.
I think it’s a good thing for us, for the great city of Atlantic City. Lunn told the PA. “A rising tide sweeps away all ships. I am a believer in this.
Borgata’s new chef says the property’s 2,767 rooms need to be redesigned to offer unique amenities. The MGM executive said the goal of the hotel renovation would be to keep the resort “relevant and competitive.”
It will take well over $10 million to accomplish this undertaking. But it’s an essential investment, Lunn believes.
[Hotel renovations are] a clear priority, said Lunn. “As the market leader, we need to be best in class for our bedroom product. Right now we have quality, but are we relevant? Do we have the latest amenities in our rooms? It’s on my short list.
The MGM brass in Las Vegas is betting on Lunn’s ability to bring Borgata back to pre-coronavirus business levels.
In 2019, Borgata recorded gross operating profit of over $209.5 million. In COVID-19 2020, Borgata posted an operating profit of only $650,000. In the three quarters of 2021 (full year figures have yet to be released), Borgata’s operating profit was $57.2 million.